By Francois Giudice, Senior Correspondent, France

As part of a strategic review launched several months ago, Orange initiated a search for a  partner to support the development of its banking subsidiary. Following work carried out by  the Group’s general management in conjunction with an Ad Hoc Committee made up of the  Chairpersons of the Board Committees, and taking into consideration the various analyses  and offers already received, the Group’s Board of Directors has agreed to enter into  exclusive negotiations with BNP Paribas to define a referral partnership for the Orange Bank  customer portfolio in France, and to develop financing solutions for mobile devices. The two groups will also discuss the terms of a takeover of Orange Bank’s business in Spain.

This partnership with BNP Paribas, which will provide a continuity solution for Orange Bank  customers, is part of Orange’s wider intention to progressively withdraw Orange Bank from  the retail banking market in France and Spain. This decision was taken without the presence  of the Chairman of Orange’s Board of Directors, who chose to withdraw from the decision[1]making and voting process given his membership of the Board of BNP Paribas. This  operation, which only concerns Orange’s activities in France and Spain, will have no impact  on the Group’s financial trajectory for the 2023-2025 period as presented at the Capital  Market Day on 16 February 2023.

This project will be subject to various information and consultation procedures with  employee representative bodies, which will begin shortly. The process will be conducted in  full transparency, providing information on actions undertaken to find a partner and with  priority being given to informing and supporting all employees (internal redeployment,  training). The Group will also work closely with all the relevant authorities and regulators.

Throughout the process, there will be no change in services, in existing loans or day-to-day  operations for customers, including the taking of deposits and the granting of loans. The full  range of information on Orange Bank products and services will continue to be available on  orangebank.fr and orangebank.es. Orange Bank today has a solid balance sheet and will continue to meet all its regulatory  obligations until its future withdrawal from the market.

Orange Group CEO Christel Heydemann commented: “I’d like to thank our teams who,  thanks to their hard work and commitment, have made Orange Bank a bank that today  serves over two million customers and that benefits from one of the best applications on the  market. The evolution of the banking market now leads us to guide the bank into a new  phase. Our priority will be to provide exemplary support for all our employees and customers. This process will be carried out in complete transparency, within the framework Nof our dialogue with our staff representative bodies. I know that I can also count on the  commitment and excellence of the teams at BNP Paribas to provide the best possible  support for our customers”.

Chief Operating Officer of BNP Paribas Thierry Laborde said: “As a long-standing partner of  the Orange Group and Orange Bank, we are naturally delighted to be able to provide a  complete continuity solution to Orange Bank customers following Orange Group’s strategic  choice to withdraw from retail banking. Whether it’s day-to-day digital banking with Hello  Bank, consumer credit with BNP Paribas Personal Finance, or insurance, which we already  operate through a partnership between BNP Paribas Cardif and Orange, we will support customers with a solid banking package and high-performance services”.